Audit examines the company’s financial records and verifies whether it’s accurate. It’s done through systematic review of the company’s transactions. Auditing looks at the financial statements and accounting books in case of small businesses. As a business owner in Dubai or UAE, you’re responsible to keep up clear accounting books. In case of missed records, audits will be drawn out and difficult.
Typically, audit brings in a fear among entrepreneurs that there must be something wrong. Audits help to spot problems within your business. But, it keeps small businesses on track and boosts your business bottom line. Proper auditing has become a tool to improve business performance, policies, governance, and other processes.
What are the different types of audits?
- Internal audit
Internal audit is conducted by someone within your business to prevent financial mistakes and check out company goals. Internal audit usually doesn’t look at the finances. Instead, they examine the business operations and make sure everything is functioning efficiently.
- External audit
External auditing is usually performed by a third party like local tax agency, insurance company, or the IRS. External auditors have a look at the complete financial records and also examine specific aspects of business operations.
- IRS audit
IRS audit may take place due to any discrepancy in your small business tax return. In certain cases, your business might be randomly selected for an audit. IRS audits are either conducted by mail or through in-person interviews.
How auditing benefits your sales growth?
Dubai based small businesses consider auditing as an opportunity to improve their organization. Even if it’s due to industry regulations or based on the requirement of potential investors, auditing needn’t be a negative or stressful experience.
Internal and external audits can be painful for organizations but surveys identify financial audits as an opportunity to improve business performances. 70 percent of auditors provide valuable business insights.
- Compliance is the main reason to conduct an audit. Auditing provides complete peace of mind for business owners in UAE or Dubai that the organization is 100% compliant with all its current statutory obligations. Non-compliance has the risk of incurring heavy fines, tarnished reputation, and loss of customers as well.
- In-depth audits usually come up with ideas for business improvement as well as enhance sales. Audit experts suggest ways to improve internal controls, business systems, accounting practices, and governance.
- Improve your sales with credibility! Auditing provides independent verification of financial statements and clear representation of entity’s current situation. Get invaluable confidence and improve sales among potential buyers.
- Be accurate in the organization’s financial statements by analyzing the transactions. Having a detailed knowledge of income, expenditure, assets, and liabilities allow companies to focus more on sales. Business owners in Dubai or UAE consider auditing as a significant step for planning, budgeting, and financial decision-making.
Auditing is a useful tool and unique investment that supports the sales growth of your organization. Both internal and external audits find ways to safeguard assets as well as streamline financial reports. Even if there is a cost for auditing, this cost can be considered as an investment to accurate financial statements and sales patterns. Ignoring auditing will significantly affect sales and efficiency of business! So, focus on proper audits and recognize the success in your business!